Thank you, Mr. Speaker. Composition of the board of directors is as follows: the proposed composition of the board of directors for the continued Power Corporation is outlined in Section 2(a) of the Unanimous Shareholder Agreement. This section states that unless the shareholders agree in writing, and notwithstanding the provisions of the by-laws of the corporation, the board of directors will consist of twelve members. The Western Territory will be entitled to appoint six directors to the board and Nunavut will be entitled to appoint four directors to the board.
The chairman and the president would also act as members of the board of directors. The chairman would, under the USA, be appointed by agreement of the shareholders and the board would appoint the president. The president may be, but does not have to be, appointed from the existing members of the board of directors. The proposed composition of the board of directors for the new Power Corporation drew sharp criticism from the Nunavut presentations to the standing committee. The Interim Commissioner's Office is concerned that the Nunavut board members would always be in a minority position on the board of directors. This concern is compounded by the fact that a majority of board members would constitute a quorum and any decisions could be made by a simple majority of that quorum.
Nunavut Tunngavik Incorporated also raised the points that the proposed board of directors was not consistent with the recommendations contained in the NIC's Footprints reports. In NTI's view, the shared arrangement model proposed in Footprints 2 requires equal political control. NTI suggests that it would be irresponsible of NTI to approve a share structure that results in a permanent disadvantage in voting shares. In NTI's opinion, a 50/50 share split between the two governments would represent institutionalized trust.
The joint submission from the Iqaluit/Baffin Chambers of Commerce also proposes equal representation by the two Territories at the board of directors level. The Chamber is of the opinion that anything less than 50 percent in shares or control would mean two Power Corporations are necessary.
In presenting on behalf of his constituents, Mr. Michael Miltenberger, the MLA for Thebacha, also agrees that it is inappropriate that the proposed agreement is indefinite and argues that a binding agreement should not be imposed on the two future territorial governments. He suggests that there should be an initial specified review period (perhaps three years) and a defined process for dividing the corporation. At the end of the review period, either party could decide to terminate the agreement. Mr. Miltenberger envisions the review and dissolution agreement incorporated into Bill 1, The Power Corporation Act.
Mr. Speaker, I would now like to ask Mr. Erasmus, chairman of the committee, to conclude the report.